By Iris C.
Gonzales (The Philippine Star) | Updated July 28, 2015 - 12:00am
MANILA,
Philippines - Mass housing developer 8990 Holdings, Inc. is on track to meet
its financial targets for the year, its top official said.
The company has set a profit goal of P3.8
billion to P4 billion on revenue targets of P9.6 billion to P10 billion for
2015.
“We are still
on track to meet our earnings guidance in 2015,” 8990 president Januario Jesus
Atencio said during the company’s annual stockholders’ meeting yesterday. The income forecast would translate to a 20
percent growth.
In the first
semester, the company’s net income grew by 18 percent.
Atencio said
8990 expects to sustain its positive momentum with nine new projects set to be
launched this year.
“Our job in
management therefore is to make sure these new projects achieve their desired
operating speeds in the shortest possible time so they can start to contribute
to the targets in 2015,” he said.
The company
is behind Deca Homes. Its projects are located in Cebu, Iloilio, Cavite, Davao,
Pampanga and along EDSA in Metro Manila where its first Urban Deca Tower is
rising.
In 2014, net income jumped by 51 percent to P3.3
billion from P2.2 billion the previous year.
“Revenue
increased by 43 percent while operating expense only rose by 36 percent. Net
margin of 43 percent exceeded the benchmark of 40 percent,” Atencio reported.
He said last
year’s macroeconomic environment provided for a bullish and positive market for
primary housing.
“These
factors are still in play today. What is new is Pag-IBIG Fund’s lowering their
core interest rate to 6.5 percent, and the latest HUDCC policy increasing the
ceiling of low-cost housing from P1.25 million to P1.7. This means that buyers
of DECA homes can now avail of lower monthly amortizations even at higher
package prices that allow us to provide more added value to our housing
products and services,” he said.
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